Investors Business Daily·1d ago
Top Funds Feast On Shell, Microsoft, Palantir And 24 More StocksThe best mutual funds place massive bets on Microsoft, Palantir and Apple. But that's just the start.
Shell's revenue recovered to $92.8B in 2026Q3, up 36.2% year-over-year, with gross margin expanding to 21.7% and operating margin reaching 19.0%, suggesting a meaningful earnings rebound from the 2024Q4 trough of 3.6% operating margin.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue rebounded to $92.8B in 2026Q3 with gross margin of 21.7% and net margin of 13.0%, though the ten-quarter window shows volatility such as the -12.2% revenue decline in 2025Q2 that suggests earnings remain highly sensitive to commodity prices.
Shell's stock may be undervalued, with a DCF analysis indicating a fair value around $127.25, significantly higher than its recent trading price of approximately $89.46.
Shell has a strong market capitalization of approximately $253.34 billion and a low debt-to-equity ratio of 0.38, indicating financial stability.
Shell's focus on LNG as a core earnings engine and its 'Value over Volume' approach are seen as key for cash returns, supported by demand for its combined gas and renewables offering.
Shell has reported EPS below consensus estimates and revenue that fell short of expectations, raising concerns about future growth.
Potential LNG oversupply could lead to cost pressures, limiting revenue and earnings, with some analysts believing this could compress LNG margins.
Heavy cost-cutting and large buybacks might squeeze technical capability and reinvestment, potentially affecting future project quality and returns.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 29, 2026 | $3.86+9.0% vs $3.54 | $92.8B-0.4% vs $93.2B |
Q3 2026 Jul 30, 2026 | $3.52+9.0% vs $3.23 | $94.7B+9.8% vs $86.2B |
Q2 2026 May 7, 2026 | $2.44+14.0% vs $2.14 | $69.7B-10.1% vs $77.5B |
Q1 2026 Feb 5, 2026 | $1.14-5.8% vs $1.21 | $64.1B+2.3% vs $62.6B |
The best mutual funds place massive bets on Microsoft, Palantir and Apple. But that's just the start.
SHEL exits North West Shelf with a $1.45 billion base deal, sharpening its portfolio focus without abandoning Australian LNG.
VEA dominates international portfolios, but a smaller rival fund uses a completely different logic to pick foreign stocks, and over the past five years it has quietly beaten the giant on both returns and income.
SHEL's five-year LNG deal with METLEN secures six annual cargoes from 2027, strengthening its European market presence and U.S.-sourced gas sales visibility.
Benchmark SHEL against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Shell plc (SHEL)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $99.09 | $276.27B | 16.52 | -6.13% | 6.68% | 10.04% | 2.87% | |
| $165.87 | $687.53B | 24.76 | -4.52% | 10.46% | 15.24% | 2.41% | |
| $212.61 | $423.43B | 32.07 | -4.64% | 11.95% | 13.89% | 3.23% | |
| $44.53 | $116.6B | 2182.84 | 0.08% | 3.79% | 11.75% | 4.29% | |
| $87.82 | $195.58B | 15.19 | -6.78% | 10.46% | 17.56% | 4.35% | |
| $55.45 | $80.33B | 31.81 | -7.48% | 8.72% | 14.2% | 4.02% |
Shell plc (SHEL) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Shell plc (SHEL) stock FAQ — growth, dividends, profitability & financials explained
Shell plc (SHEL) reported $321.25B in revenue over the trailing twelve months. Revenue was $266.89B in fiscal year 2025. That is 185% more than the $93.69B of fiscal year 1998.
Shell plc (SHEL) revenue fell by 6.1% in fiscal year 2025, compared with the prior fiscal year.
Yes. Shell plc (SHEL) earned $32.70B in net income over the trailing twelve months (a 10.2% net margin).
Yes. Shell plc (SHEL) pays a dividend that yields 2.87% at the current price, a moderate yield.
Shell plc (SHEL) had a return on equity (ROE) of 10.0% in fiscal year 2025. That is in line with the market's typical 10-15%.
Shell plc (SHEL) generated $36.81B in free cash flow over the trailing twelve months.
